The recent $400 million investment by the US Department of Defense (DoD) in MP Materials, a leading rare earths producer, has drawn global attention to the critical minerals sector—and Namibia could be next in line for similar strategic partnerships. The deal, which includes a price guarantee for neodymium-praseodymium (Nd-Pr) and a commitment to purchase all output from a new magnet plant in Texas, underscores the growing urgency among Western nations to secure non-Chinese supplies of these essential materials.
For Namibia, a country rich in heavy rare earth elements such as terbium and dysprosium, the US move highlights an opportunity to leverage its own resources. Namibia Critical Metals (NMI), a Canadian-listed company with a major project in the country, has already caught the eye of Japan, another nation keen on reducing its reliance on China. The company’s Lofdal project, fully permitted and shovel-ready, is one of the world’s largest known deposits of these heavy rare earths—key components in high-performance magnets used in electric vehicles, wind turbines, and defense systems.
A strategic us move with global implications
The DoD’s agreement with MP Materials includes a minimum price guarantee of $110 per kilogram for Nd-Pr, two light rare earth elements crucial for magnet production. This price floor, valid for a decade, ensures stability for MP Materials, even if market prices drop. Additionally, the DoD has committed to purchasing all output from MP’s new “10X” magnet plant in Texas, which aims to produce 10 metric tons of neodymium-iron-boron (NdFeB) magnets annually—enough to make it the largest producer outside China.
David Merriman, a rare earths expert at consultancy Project Blue, notes that this deal provides MP Materials with a safety net while allowing the company to benefit if prices rise above the guaranteed minimum. The agreement also ensures a minimum annual operating profit of $140 million for the 10X plant, increasing by 2% each year—a significant incentive for domestic rare earth production.
Why this matters for Namibia
While the US focuses on light rare earths like Nd-Pr, heavy rare earths such as terbium and dysprosium are even scarcer and more critical for advanced technologies. China currently dominates global supply, controlling over 90% of production. This has prompted Japan, the US, and Europe to seek alternative sources—and Namibia is emerging as a key player.
Namibia Critical Metals’ Lofdal project, backed by Japan’s Organization for Metals and Energy Security (JOGMEC), is one of the few heavy rare earth deposits outside China with advanced development status. Darrin Campbell, CEO of NMI, describes the US DoD’s move as a “fantastic development for the sector” and hopes similar support will extend to heavy rare earths.
“Terbium and dysprosium are essential for high-performance magnets, yet their supply is even more constrained than Nd-Pr,” Campbell said. “With Lofdal fully permitted and ready for development, Namibia is well-positioned to become a strategic supplier.”
Japan’s role in Namibia’s rare earth future
Japan, a major consumer of rare earths for its electronics and automotive industries, has been actively securing supply chains outside China. Its partnership with NMI through JOGMEC includes funding for feasibility studies and exploration, signalling strong confidence in Lofdal’s potential.
The project already holds a 25-year mining license and has completed all environmental approvals, putting it ahead of many global competitors. If developed, Lofdal could supply a significant portion of the world’s terbium and dysprosium, reducing reliance on China.
A growing global race for rare earths
The US DoD’s investment in MP Materials reflects a broader trend of Western nations scrambling to secure critical minerals. The European Union has listed rare earths as strategic materials, while the US has increased funding for domestic processing and recycling.
For Namibia, this presents a major economic opportunity. The country already produces uranium and diamonds, but rare earths could become another high-value export. However, challenges remain, including the need for further investment in processing infrastructure—something that partnerships like NMI’s with JOGMEC could help address.
As the world shifts toward green energy and advanced technology, Namibia’s rare earth resources may soon take center stage. The US DoD’s latest move has thrown a spotlight on the sector, and if similar support follows for heavy rare earths, Namibia could find itself at the heart of a new global supply chain.
For now, all eyes are on Lofdal—and whether it can deliver on its promise as a game-changer for both Namibia and the rare earths market.